Deloitte moves to Ethiopia after merger contract
Posted Tuesday, July 17 2012 at 20:13
Deloitte East Africa has opened shop in Ethiopia through a merger, making it the second local financial advisory to chase business opportunities in the fast-growing country after Ernst & Young.
Deloitte has partnered with an Ethiopian advisory firm Haile Solomon & Tekeste to get a foothold in that market where it says there is a lot of potential for consulting and financial advisory work. The partnership took effect on July 1.
“Ethiopia is a new and fast-growing market and we are positioning ourselves to grow our business there with this early entry,” said Sammy Onyango, Deloitte’s chief executive.
Ethiopia has been ranked as the fastest growing non-oil economy in Africa ahead of Malawi, Rwanda, Uganda, Mozambique, Tanzania, Zambia, Cape Verde, Liberia and Gambia, in that order, according to the Economist magazine.
John Kiarie, a partner at Deloitte, said the country is set to join the World Trade Organisation in six years, a move that will see it open up its economy and boost opportunities for business advisory firms.
In Ethiopia, there is no legal requirement for companies to have their accounts audited, leaving advisory firms with three key offerings: consulting, tax, and financial advisory services.
Ethiopia’s rapid growth is also attracting more foreign direct investment, a move that is set to lead to greater demand for services of firms like Deloitte.
South Africa’s largest consumer-foods firm, Tiger Brands, for instance, expanded into Ethiopia last year with a big acquisition.